Heimstaden Bostad buys European properties in 9.1 bln euro deal

Akelius Residential Property AB (publ)

26/09/2021 23:31

Sept 26 (Reuters) - Swedish residential real-estate company
Heimstaden Bostad  HEIMpref.ST  said it agreed to buy a
portfolio of properties located in major European cities such as
Berlin, in a deal valued at about 9.1 billion euros ($10.66
billion).
    Heimstaden will buy 28,776 homes across Sweden, Germany, and
Denmark from rival Akelius Residential  AKELd.ST , it said in a
statement on Sunday. 17,642 of these homes would be in Germany,
and includes the company's first investment in the city of
Hamburg.
    "We are particularly pleased to grow and expand
geographically in Germany, the largest and most mature
residential market in Europe, and establishing a presence in
Hamburg,” Christian Fladeland, co-chief investment officer of
Heimstaden, said.
    Heimstaden said the deal will be financed using cash, 24.8
billion crowns ($2.87 billion) in new equity, and a 65.7 billion
crown bridge financing facility with a 2-year maturity.
    Deutsche Bank served as the financial adviser to Heimstaden.
   
       
($1 = 8.6462 Swedish crowns)

($1 = 0.8537 euros)

 (Reporting by Shubham Kalia in Bengaluru; Editing by Daniel
Wallis)
 ((Shubham.Kalia@thomsonreuters.com;))